Who knows all about Universal Credit?

[EM2]

Long story short, I have a friend who is having a really tough time, and despite help from their parents, selling almost everything they can and being on Universal Credit, is really struggling to make ends even be close to meeting.
I was thinking of setting up a GoFundMe, for a fairly modest amount (say £500), but was wondering how this might affect their UC. Do UC claimants have to declare everything to DWP, even gifts or bequests for example?

Please note that I don't want this thread to be about the pros and cons of UC, or anyone's feelings about it, simply about how it actually works.

 

[ComUtoR]

Have they considered a Hardship Payment ?

Advance and hardship payments
If you don’t have enough to live on while you wait for your first payment you can ask for an advance payment at your Universal Credit interview or by calling the helpline after you’ve made a claim.

You can also ask for a hardship payment if you can’t pay for rent, heating, food or hygiene needs because you got a sanction.

You need to pay it back through your Universal Credit payments - they’ll be lower until you pay it back

https://www.gov.uk/universal-credit/other-financial-support

Never had that good an experience from them but many do : https://www.citizensadvice.org.uk/
Other organizations can also help provide options and advice : https://www.turn2us.org.uk/

 

[BluePenguin]

I don't know what about the ins and outs of all of the rules, although personally I would think that any money raised and given to your friend would count as a gift, rather than income which would then need to declared and ducted from their next payment leaving them worse off.

Claimants do not have to declare every single pound they receive as gifts although the DWP is very strict about the declaring any income from work or savings. Perhaps another alternative to giving them the money would be to use it to purchase food and/or pay for bills on their behalf?

 

[EM2]

Perhaps another alternative to giving them the money would be to use it to purchase food and/or pay for bills on their behalf?

I've suddenly had a thought. I could put the money onto a prepaid card and then just send them the card?

 

[Domh245]

In terms of forum members likely to know about UC, @Arctic Troll is probably a good bet, I know he's mentioned working with people in difficult circumstances in other threads so presumably has also got some experience with UC.

Hope your friend finds themselves in a better situation soon.

 

[Tetchytyke]

A lump sum gift will, usually, be treated as capital not income. It can affect their UC award: you cannot claim UC with capital of more than £16,000 and savings over £6000 are deemed to give you a notional income of about a fiver a month for every £250 over £6000 you have.

A pre-paid credit card may be the best solution.

 

[Tetchytyke]

Have they considered a Hardship Payment ?[/QUOTE

They're for when you're waiting for your first payment or when you've been sanctioned. They don't cover the fact that UC is set at subsistence levels. They also have to be repaid at up to 40% of your monthly award (excluding housing costs). You can get a budgeting loan from the social fund, but again that has to be repaid by deductions from future benefit. Useful for emergency white goods, but not to live on.

At work, the charitable help we go for is SSAFA and the British Legion for ex service, or the Greggs Foundation for white goods and clothes. Food bank for everything else. It's depressing work sometimes.

 

[StoneRoad]

What about a windfall from "gambling" - how does that affect UC ? @Arctic Troll - do you know ?
(if it is dis-regarded, then that would be a good disguise for a gift, or maybe dress it up as a loan ...)

 

[Tetchytyke]

Gambling wins are treated as savings, and so treated to the usual rules on savings. Same with most windfalls.